Food delivery platform Zomato has introduced an intriguing new policy: a ‘long-distance service fee’ for deliveries exceeding four kilometres. This change not only enhances their service model but ensures that your favourite meals reach you even from afar, with the added assurance of quality delivery. Whether you’re craving comfort food or exploring new culinary delights, Zomato is here to bridge the distance.
For deliveries exceeding six kilometres, Zomato is implementing a fee ranging from ₹25 to ₹35, depending on the city, irrespective of the order total. This structured pricing ensures that even distant cravings are met with efficiency and reliability.
In light of the recent fluctuations in fuel prices, Zomato has taken proactive measures to support its delivery partners by introducing a new remuneration component specifically aimed at long-distance orders. The company has recognised that these longer deliveries can significantly impact earnings due to increased fuel consumption.
To address this issue, Zomato has implemented a long-distance return pay initiative. This program serves a dual purpose: first, it allows delivery partners who complete long-distance deliveries to receive another order within 15 minutes, facilitating a quicker return to their base area. This helps them maximise their earning potential by minimising downtime between deliveries.
Platform Fee On Zomato
Delivery agents are raising concerns about Zomato’s revised payment structure based on distance. For orders up to 5.5 kilometres, Zomato pays a flat rate of ₹30, plus ₹10 for each kilometre beyond that. While the base pay remains unchanged, delivery agents will now earn one rupee for every additional 100 meters over the 5.5 km limit. This information was shared by Shaik Salauddin, National General Secretary of the Indian Federation of App-Based Transport Workers (IFAT), in an interview with Gadgets 360.
Previously, the company paid delivery agents ₹300, ₹600, and ₹800 for completing 11, 16, and 20 orders in a day. Now, delivery executives say the payments have dropped to ₹250 for 10 orders, ₹400 for 15 orders, ₹600 for 19 orders, and ₹850 for 23 orders, as stated by Salauddin.
Alternatively, if no additional orders are available within that timeframe, delivery partners will be compensated with an extra payout for the distance they must cover while returning from the long-distance delivery to their local area. This additional payment aims to help offset their fuel costs and ensure that they are fairly compensated for the time and resources spent travelling longer distances. Overall, these measures are designed to enhance the financial stability of delivery partners while maintaining Zomato’s commitment to timely and efficient service.
The NRAI Statement
The National Restaurants Association of India (NRAI) has reached out to Zomato to voice its concerns regarding the recent changes in the company’s pricing structure. According to an NRAI spokesperson, “A detailed discussion on the issue will happen later this week,” indicating that stakeholders are eager to engage in dialogue about the implications of these new fees on the restaurant industry.
Zomato’s decision to introduce these changes comes at a time when the food delivery market is experiencing a slowdown. Both Zomato and its primary competitor, Swiggy, have reported a decline in year-on-year growth, with figures dropping below 20 percent over the past two quarters. This deceleration in growth has prompted the companies to reevaluate their business strategies to adapt to changing market conditions and maintain profitability. The upcoming discussions with the NRAI could play a crucial role in shaping Zomato’s approach moving forward in this challenging landscape.
Customer Reviews On This
The introduction of the long-distance service fee has led to customer dissatisfaction, primarily due to perceived inconsistencies in distance measurements and sudden fee hikes. These issues have caused some users to reconsider using the platform, with many expressing a preference for more transparent and consistent pricing. We are looking forward to your opinion in the comments. Follow Entertales for such updates on current news and global affairs.
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